Brexit News for Wednesday 29 March

Brexit News for Wednesday 29 March

Theresa May signs Article 50 letter to trigger Brexit…

The Prime Minister will formally launch the process for the UK to leave the European Union in a letter that will be hand delivered to European Council President Donald Tusk at around 12.30pm. After marking out hard lines on future payments to the European Union and the influence of EU law after Brexit, the text of the Prime Minister’s letter is expected to offer some room for manoeuvre in negotiations… Mrs May signed the Article 50 letter in the Cabinet room on Tuesday afternoon, overseen by a picture of the first British Prime Minister Robert Walpole. Later, she called Mr Tusk, European Commission President Jean-Claude Juncker and German Chancellor Angela Merkel. – Sky News

>Sir Bill Cash on BrexitCentral: This historic day will restore our democratic freedom to govern ourselves

…with a highly stage-managed plan in place for the letter handover in Brussels…

The handover is due to take place at 12.30, at which point Mr Tusk is planning to Tweet the fact that he has received it. The two-year countdown to Britain’s exit from the EU will officially start the moment Mr Tusk has the letter in his hand. He will pose for posterity receiving the letter from Sir Tim, then… make a brief statement. At the same time, Mrs May will make a statement to the House of Commons confirming that the Brexit process has begun and setting out the contents of the letter. Downing Street will publish the letter and place it in the Commons and the Lords once the Prime Minister has spoken… As soon as Mrs May’s grilling is over, she and members of the Cabinet will begin calling their counterparts across the EU to begin the Government charm offensive. Meanwhile, in Brussels, the leaders of political parties in the European Parliament will meet at 2pm UK time to discuss the letter and finalise their “red lines” for the negotiations to come… Mr Tusk will send his formal reply to Mrs May on Friday. – Daily Telegraph

  • Theresa May triggers Article 50, Brexit begins – Politico live blog
  • Article 50: Here’s what will actually happen today – City A.M.
  • The next two years: how negotiations will unfold – The Times (£)
  • Don’t hold your breath for EU talks: it will be months before they start in earnest – Oliver Ilott for The Times (£)

…as Theresa May pledges to get the right deal for ‘every single person in this country’

Theresa May will call on Britons to put their Brexit disagreements behind them and join forces on the “momentous journey” to freedom from the European Union… She will say [to the Commons]: “When I sit around the negotiating table in the months ahead, I will represent every person in the whole United Kingdom – young and old, rich and poor, city, town, country and all the villages and hamlets in between. And, yes, those EU nationals who have made this country their home. It is my fierce determination to get the right deal for every single person in this country.” Mrs May will try to unify the country behind her by talking of “shared values, interests and ambitions” that “can, and must, bring us together … ambitions that unite us, so that we are no longer defined by the vote we cast, but by our determination to make a success of the result”. – Daily Telegraph

  • Extract of Theresa May’s Article 50 speech – ConservativeHome
  • EU nationals May’s priority as she triggers Article 50 – Politico
  • Theresa May eyes ‘special partnership’ with EU – BBC News
  • Sky Data Brexit poll: Half of Britons happy about EU divorce process starting with only 36% sad – Sky News
  • Theresa May: ‘Ice Maiden’ who brings straight talking to the table – Henry Zeffman and Matt Chorley for The Times (£)
  • New optimism for a future free from the control of EU – Daily Express editorial
  • Whether Brexit brings you joy or sorrow, this is a moment of collective relief. Finally, negotiations can begin – The Independent editorial

MEPs will veto any attempt from Britain to impose a ‘cut-off date’ for free movement

The European parliament will veto any Brexit deal that prevents EU citizens who move to the UK during the next two years from having the same rights to live and work in Britain as those already in the country. The EU’s chief Brexit negotiator, Michel Barnier, and MEPs are understood to be concerned by reports that the British government wants 29 March, when it officially notifies the EU of its intention to leave, to be the “cut-off date” for the free movement of people… Guy Verhofstadt, the European parliament’s chief Brexit representative, said: “Any unilateral decision to curtail the rights of EU citizens in the UK, while the UK remains a member of the EU, would be contrary to EU law and we would oppose such a move vigorously. This would not be the right way to start negotiations.” – The Guardian

  • Barnier wants citizens’ rights deal by year-end – Politico
  • From money to migrants: the obstacles that must be overcome – Henry Zeffman and Oliver Wright for The Times (£)
  • Angela Merkel ‘will put the EU interests ahead of German carmakers’ in Brexit negotiations – Daily Express
  • The key issues Theresa May has to grapple with in her Article 50 letter – in 6 charts – Daily Telegraph
  • EU judges may rule until 2025 – Bruno Waterfield for The Times (£)
  • Sequencing and money. The first big challenges to May’s Brexit negotiation – Henry Newman for ConservativeHome
  • Both sides are spoiling for a fight – Bruno Waterfield and Oliver Wright for The Times (£)

Danny Finkelstein: The key to the Brexit deal is making the EU think it’s won

We know what we want from the Brexit talks… but what does the EU want? Not what will its formal position be, but what is it really after? … It is obvious that the one thing that we can’t do is aim to look like winners. This is the Brexit paradox. If we insist on being winners we are bound to be losers. But if we are willing to be losers we can be winners… We shouldn’t offer up the loss — here, have a load of money, for instance — because while that might respond to their overt demands, it doesn’t meet their real interests. Their real interests — discouraging other defectors — demand that we be quite irritated by the concessions that we make, so we mustn’t be too eager to make them. – Danny Finkelstein for The Times (£)

  • What the EU27 wants from Brexit – Charlie Cooper for Politico
  • What will happen to the EU after Brexit? – Peter Foster for the Daily Telegraph (£)
  • How Britain and the EU can both benefit from Article 50 – James Forsyth for The Spectator Coffee House
  • Britain holds aces, but playing them is a dangerous game – David Charter and Bruno Waterfield for The Times (£)
  • The EU is on the verge of the abyss. Here’s why Theresa May has a winning hand and must go all in – Allister Heath video for the Daily Telegraph
  • Negotiators on all sides must put short-termism aside and think of the future generations that will judge them – The Times (£) leader

Government confirms no Scottish independence referendum during Brexit negotiations after Sturgeon secures MSPs’ backing

MSPs have backed Nicola Sturgeon’s calls for a second independence referendum in Scotland. The Scottish Parliament voted 69 to 59 in favour of the First Minister’s plan to seek permission from the UK Government for a vote to be held between autumn next year and spring 2019… She faces an uphill battle, however, as Prime Minister Theresa May has already promised to block another referendum during the Brexit negotiations. A UK Government spokeswoman echoed this, saying they would “not be entering into negotiations on the Scottish Government’s proposal”. She added: “At this point, all our focus should be on our negotiations with the European Union, making sure we get the right deal for the whole of the UK.” – Sky News

  • Nicola Sturgeon accused of planning ‘endless’ independence campaign after she wins Holyrood referendum vote – Daily Telegraph
  • If Scotland can be ignored on Brexit, then our voice can be ignored at any time – Angus Robertson MP for The Times (£)
  • Brexit is an opportunity to make a federal United Kingdom – Gordon Brown for the FT (£)

London Mayor Sadiq Khan urges EU not to punish UK for Brexit

The EU should not try to “instil fear” by threatening to “punish” the UK for Brexit with a bad deal, the London Mayor has warned Brussels. Sadiq Khan says the EU should not try to “secure its future by fear” and said a bad deal for Britain’s capital would hurt Europe too… He said: “Now is the time to be confident in the European Union, and to act with confidence. There is no need – as some have suggested – for the EU to send a message, or to instil fear, by punishing the UK. Because a proud, optimistic and confident institution does not secure its future by fear.” – Sky News

MPs ‘walk out’ of Brexit Select Committee meeting because of Hilary Benn’s ‘gloomy’ Brexit report

Sources said Hilary Benn attempted to “bounce” members into accepting a 155-page report into the Government’s Brexit White Paper without proper consultation. They said the “massively skewed” report focused too heavily on the negatives of leaving the European Union and did not reflect the evidence heard by the committee, prompting pro-Brexit MPs to leave the meeting in protest. The source added that there had been no consultation on the report with the rest of the committee before Mr Benn put it to members for amendments, a process which typically comes after the terms of the report have been agreed… Nine members of the committee, which is made up of MPs from all parties, are expected to refuse to back it or abstain. The report is likely to pass the threshold for publication thanks to the other 11 members, who are broadly anti-Brexit. – Daily Telegraph

  • Leavers walk out of Brexit Committee over Benn’s highly partisan report – Guido Fawkes

Boris Johnson backs Telegraph campaign to cut EU red tape that is choking Britain after Brexit

Boris Johnson has backed calls to sweep away decades of “burdensome” EU regulations after Brexit as he “applauded” a campaign by The Telegraph to slash red tape… The Telegraph has called on the Conservative Party to promise a bonfire of EU red tape in its 2020 manifesto to put Britain on a radically different course… Lord Lawson said the Thatcher government’s wide-ranging programme of deregulation in the 1980s “transformed the performance of the British economy”. He added: “Once out of the EU, we have the opportunity to do this on an even larger scale with the massive corpus of EU regulation. We must lose no time in seizing that opportunity.” – Daily Telegraph

Reduced costs for British families if UK unilaterally drops food import tariffs, report claims

Farmers across Europe will suffer if the UK unilaterally drops tariffs on food imports after Brexit, in a move that will increase competition and reduce costs for British families, new analysis claims. Rabobank said the UK’s adoption of a New Zealand-style model should not be dismissed, even though economists have warned that it would “wipe out” parts of UK agriculture. Harry Smit, a senior analyst at the bank, said such a move would be “consistent with the UK’s historically pro-free trade approach”, but would also reduce food security and make the UK more vulnerable to volatility in world market prices… Mr Smit said after Brexit, EU countries would have “an interest in maintaining access to the British market, while the UK will no longer only have to look to the EU for its food needs”. – Daily Telegraph

London holds off New York to keep its title as the world’s number one financial centre despite Brexit uncertainty

London has held onto the top spot as the world’s leading financial centre, according to a global study… The latest Global Financial Centres Index by Z/Yen said the top five financial centres remained unchanged with the capital holding onto its crown, followed by New York, Singapore, Hong Kong and Tokyo. But Singapore is fast closing in on the two cities ahead, rising eight points to be 20 points behind New York, having been 42 points behind in the last report. The capital was still comfortably ahead of other European hotspots though – Luxembourg was 18th, Frankfurt 23rd and Paris 29th in the rankings. – City A.M.

  • The government must move fast in Brexit talks to stop a City exodus – Rob Moulton for City A.M.

Watchdog spoke to Bank of England over EU campaign rules

The Bank of England, International Monetary Fund and other economic bodies were approached during last year’s EU referendum to ensure they understood the rules around political campaigning. Governor Mark Carney came under fire from Brexit supporters for his warnings about the effects of a Leave vote. The Electoral Commission said it made several “interventions” during the poll to ensure compliance with the rules. One of these led to The Sun registering as an official Brexit campaigner. In total 123 campaigners registered with the watchdog during the referendum, according to a new Electoral Commission report, spending a total of £32.6m. – BBC News

Dominic Raab MP: The Article 50 negotiations are going to be a roller-coaster. But Britain is ready for anything

Today, Britain begins negotiations to leave the EU. We start with economic self-confidence and political ambition. But, the first year will be hard going. The EU didn’t want us to leave, and Brussels has other things on its mind. To give ourselves the strongest chance of the best deal, we need to be patient, constructive and big-hearted – without blinking. – Dominic Raab MP for the Daily Telegraph (£)

Roger Boyes: After all the letdowns and showdowns, could this be the start of a beautiful friendship?

One thing is clear when you look at the ups and downs of our historic relationship with Brussels: billing Article 50 as the start of divorce proceedings misses the point. We were never in a marriage: no passion, no offspring. It was more like a flat-share where we squabbled about the bills, about the pilfering from the fridge and about the uninvited guests sleeping on the sofa. – Roger Boyes for The Times (£)

Hugh Bennett: Article 50 marks a new phase of our relationship with Europe, not an ending

Britain’s ties with Europe long predate a political project that has only existed for a matter of decades, and will endure long after we have left it… Over in Europe, the mood is shifting too. The initial anger and dismay at Britain’s vote to leave has largely given way to a pragmatic, workmanlike attitude, with most of the key players coming round to the realisation that a close relationship with the UK after Brexit makes the EU stronger, not weaker. Of course, the early phases of the negotiations will be dominated by ambitious opening gambits from either side as they demarcate the negotiating space, but as in any negotiation, this is merely the prelude to both sides finding a way to meet somewhere in the middle. The UK should take note of – but not overreact to – any of the EU’s more excessive demands at this stage. – Hugh Bennett for The i

Ambrose Evans-Pritchard: Britain is the least of Europe’s problems

The European Union is encircled on the outside, split three ways on the inside, and is saddled with a corrosive currency union that is still not established on workable foundations and is likely to lurch from crisis to crisis until patience is exhausted. Europe’s economic “Lost Decade”, and the strategic consequences that stem partly from this failure, have emboldened enemies and turned the Continent into a dangerous neighbourhood. The EU now badly needs a friend on its Atlantic flank. While it would be undignified for any British government to exploit these circumstances (and Theresa May is certainly not doing so) this is the diplomatic and military reality as Britain triggers Article 50. – Ambrose Evans-Pritchard for the Daily Telegraph (£)

  • Brexit will force Europe to look to its own future – Alexander Stubb for the FT (£)

 Rafael Behr: After today, remainers must accept that Brexit is irreversible

People do not change their minds anywhere near as often as politicians think they should. We tune into arguments that vindicate past choices and filter out inconvenient data. Pro-Europeans and Brexiters are equally inclined to sift the news for items that flatter their prejudices… Pro-European hopes of a change of heart triggered by realisation that the whole thing is a folly are misplaced. Ken Clarke compares Brexit to the Iraq war – a foreign policy choice that enjoyed majority support until gruesome reality intervened. But leavers didn’t passively go along with this new adventure: they voted for it. – Rafael Behr for The Guardian

Mark Wallace: The remains of Remain still don’t understand Leave voters or Brexit

After the referendum, most of the sharpest players on the former Remain side recognised reality and chose to accept the result – one even became Prime Minister shortly afterwards. Those left as the skeleton crew on the Remain ship were the most fervently committed, the most dismayed by the referendum result and the most contemptuous of the concept of Brexit. None of these characteristics is likely to improve the acuity of one’s judgement, and so their decision-making has declined accordingly. Week to week, they have stumbled (with one notable exception) from one wishful, vain hope to another… The longer people paint their faces with yellow stars and fantasise about Remaining, the longer they absent themselves from shaping the country after Brexit…That abstention is optional, and it is a serious mistake – it could take them years to make up the ground they are currently surrendering. – Mark Wallace for ConservativeHome

Brexit comment in brief

  • Dear EU… What Britain’s Brexit letter should really say – Allison Pearson for the Daily Telegraph (£)
  • World-class ports are essential to the success of Brexit – Charlie Elphicke MP for The Times (£)
  • Brexit is happening – so let’s all cheer up about it – Dan Hannan for CapX
  • As our Prime Minister triggers Britain’s exit from the EU, we beam this message from the iconic White Cliffs of Dover to our neighbours – The Sun Says
  • Brexit needn’t be a disaster – but both sides must heed some home truths – Mogens Peter Carl for The Guardian
  • Britain and EU: the breakdown of a decades-long marriage – Jon Henley for The Guardian
  • When it comes to a deal, triumphalism is as bad as doom-mongering – Jonathan Hill for The Times (£)
  • Asian tigers will keep UK businesses agile: Why the Brexit negotiations should push British firms eastward – Shih-Huei Ang for City A.M.
  • Why a weak sterling can help small businesses export internationally – Jonathan Quin for City A.M.
  • British voters must have the final say on Brexit – Tim Farron for The Guardian
  • Dirty Dozen: 12 people and things that ruined the EU – Konstantin Richter for Politico

Brexit news in brief

  • From the EU referendum to Article 50: the charts that show how the UK’s economy has performed – Daily Telegraph
  • ‘Realist’ Theresa May will ensure Britain leaves EU in best possible position, says Nicky Morgan – The Sun
  • Brexit secretary David Davis revealed his negotiating knowhow in 1988 book – The Guardian
  • Qatar sees Brexit as chance to supply UK more gas – minister – Reuters
  • Paris, London plan Brexit-busting business, tourism tie-up – Reuters/Daily Mail
  • Nigel Farage: I will emigrate if Brexit is a disaster – The Independent
  • Nick Clegg suggests there is an ‘inner Remainer’ within Theresa May – The Independent